Oddo BHF reiterates its 'outperform' rating and 24 euro price target on Alstom, the day after the publication of annual results accompanied by the presentation of measures to strengthen the balance sheet, including a capital increase.

"If these measures are at the high end of our expectations, we believe that the group is right to make this choice, which will enable it to turn the page on an over-stretched balance sheet, with the corollary of a risky credit rating", judges the analyst.

Oddo BHF expects average annual sales growth of 5% and an adjusted EBIT margin of 8.5% in 2026/27, a recovery story that does not seem to be factored into the current price, given an EV/EBIT 2024 multiple of around seven times.

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